Mar 4th 2019, Crypto Chartbook

Bitcoin Bottom Building

For one week, bulls have been defending the 3,800 USD value area with success. But on March 4th they had to give way to the constant pressure. Prices fell quickly to the 3,700 USD level. These extended times of range bound trading are typical for Bitcoin Bottom Building in sideways ranges.

This 60 minute chart of Bitcoin shows (represented by the yellow candlestick wicks) how the bulls defended 3,800 USD :

BTCUSDT 60 minute chart as of March 4th, 2019

BTCUSDT 60 minute chart as of March 4th, 2019

If the closing price for BTCUSDT should be above and near 3,686 USD on March the 5th, a quick daily long play could provide a short term opportunity.

Long entry opportunity on March 6th for daily swing trade long play:

BTCUSDT daily chart as of March 4th, 2019

BTCUSDT daily chart as of March 4th, 2019

It is important to see clearly so that the weekly chart, as the more dominant higher time frame, is favoring the short side. As such the suggested swing play setup should be managed with our quad exit strategy, tight stops and a conservative financing target.

Larger time frames suggest this to be a counter directional play:

BTCUSDT weekly chart as of March 4th, 2019

BTCUSDT weekly chart as of March 4th, 2019

This especially since what has been support (3,800 USD), has now become resistance. The 4 hour market profile chart illustrates the overhead pressure.

BTCUSDT 4 hour chart as of March 4th, 2019

BTCUSDT 4 hour chart as of March 4th, 2019

It is prudent to attempt low risk entry points in a bottom building phase of the market, even so they might not look as attractive at first. No one knows when the market might turn. Being early positioned doesn’t hurt, if the risk parameters are very conservative.

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About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

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